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REQUEST FOR PROPOSALS

11th August, 2017

A Strategy for the Atlantic Canadian Aerospace and Defence Sector for a Long-term Development Plan

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Table of Contents

1.0 Introduction ....................................................................................................... 3 2.0 Contracting Agency ............................................................................................ 3 3.0 Background ........................................................................................................ 3 4.0 Objective ........................................................................................................... 5 5.0 Scope and Project Definition .............................................................................. 5 6.0 Deliverables & Milestones .................................................................................. 7 7.0 Proposal Structure ............................................................................................ 10 8.0 General Conditions ............................................................................................ 11 9.0 Firm Pricing ....................................................................................................... 12 10.0 Awarding of Contract ..................................................................................... 12 11.0 Project Schedule ............................................................................................ 12 12.0 Intellectual Property ...................................................................................... 13 13.0 File Format .................................................................................................... 13 15.0 Proposal Evaluation ....................................................................................... 13 16.0 Client Contact ................................................................................................ 14 17.0 Submission of Proposals ................................................................................ 14

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1.0 Introduction

The Atlantic Canada Aerospace and Defence Association (ACADA) invites suitably qualified consultancy firms (Consultants) to respond to this Request for Proposal (RFP) for the provision of: Support in drafting a multi-year International Business Development Strategy, including the drafting of a Sector Profile which details Atlantic Canada’s Aerospace and Defence industry, with considerations from both an International Business Development and Investment Attraction perspectives. The purpose of this Strategy is to validate and support the region’s Aerospace and Defence sector as a key economic driver with particular reference to the need to introduce Atlantic Canadian firms to key suppliers to drive International Business Development opportunities and to identify Atlantic Canada’s sector-specific competitive advantage for Foreign Direct Investment (FDI). The International Business Development component of the Sector Profile should include information on the size, composition, economic indicators, industry drivers, key international markets, and supports for internationalization. The Investment Attraction component of the Sector Profile should apply an FDI lens to the information developed, considering the reasons that companies make investment decisions in new locations. Full details regarding these requirements are outlined in section 5.0. This Strategy will be developed in conjunction with an Atlantic Canadian Sector Team (Sector Team), which is comprised of sector-specific representation from each of the Atlantic Provinces (see section 2.0).

2.0 Contracting Agency For the purposes of this contract, the Atlantic Canada Aerospace and Defence Association (ACADA) will be the contracting agency on behalf of the Client. The Client is represented by the governments of Newfoundland and Labrador, Nova Scotia, New Brunswick and Prince Edward Island, the Government of Canada through the Atlantic Canadian Opportunities Agency (ACOA), and Global Affairs Canada, and industry representation through ACADA.

3.0 Background The global economy is changing. Atlantic Canadian businesses are responding to evolving global trade patterns, changing international business practices and the emergence of new competitive pressures.

Atlantic Canada possesses competitive advantages that bring new opportunities to economic growth. The region is home to great ideas, great products, great innovators, and a great drive to succeed. To that end, the Government of Canada and the four Atlantic Provinces are working together to build a vibrant economic future for Atlantic Canada by focusing their efforts and resources to stimulate the region's economy, support the middle class and address both longstanding and emerging regional challenges.

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A new all-inclusive, pan-Atlantic, whole-of-government approach - the Atlantic Growth Strategy (AGS) (http://www.acoa-apeca.gc.ca/ags-sca/Eng/atlantic-growth.html) is meant to foster a culture of growth throughout the Region.

The AGS is meant to harness the four Atlantic Province’s assets to strategically:

• Identify shared economic priorities and collaborate on the design and implementation of actions

• emphasize region-wide measures

• align actions with national and provincial priorities • engage and consult with the region's stakeholders, entrepreneurs, as well as

Indigenous, community and industry leaders • monitor progress and report publicly on results

The Government of Canada and the four Atlantic Provinces recognize that trade and investment will be a key economic driver in the region. One component identified to support economic growth is the multi-year Atlantic Trade and Investment Growth Strategy (ATIGS). The mandate of ATIGS is to: “Expand business activities between Atlantic Canada and international markets, and strategically market the region as a whole by displaying the best Atlantic Canada has to offer the world to attract new investments.” Its objectives include: Increase the Atlantic exporter base; Increase the value of Atlantic exports; Increase the number of Atlantic exports diversifying into global markets; and Increase FDI in Atlantic Canada. As such, an important component of ATIGS will be the development of a multi-year, pan-Atlantic Aerospace and Defence international business development (export) strategy, as well as a pan-Atlantic value proposition for FDI. Multi-year International Business Development Strategy The Aerospace and Defence sectors in Atlantic Canada are diverse and heavily reliant on exports. Products and services in these sectors are procured by large original equipment manufacturers (OEMs) through multiple tiers of suppliers. Atlantic Canada’s industrial base in Aerospace and Defence is characterized by a low number of large, international companies, and a much higher number of small companies. By increasing the number of Atlantic Canadian Aerospace and Defence companies integrated into the value chains of OEMs and Tier 1 suppliers, these companies will be able to diversify and expand into international markets. It is expected that the Consultant will work this consideration in mind when crafting the International Business Development perspective for the Sector Profile. In addition to drafting this Profile, the Consultant will be engaged throughout the development of the broader Strategy and is expected to work collaboratively with the Sector Team leading the Project.

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Pan-Atlantic Value Proposition for FDI In regard to the Investment Attraction component of the Project, a value proposition for attracting FDI will be considered as the compilation of assets and attributes of a region that are attractive to a potential investor which create a compelling reason for investment in this region over others. This will be the full responsibility of the Consultant to develop with input from the Sector Team. For the purpose of this study, the Aerospace and Defence sector encompasses, but is not limited to, companies who supply to clients actively engaged in the Aerospace and Defence market and/or the Department of National Defence.

If in the course of supporting this study, opportunities in other subsectors are identified, then it is expected that they would be examined as well.

4.0 Objective In alignment with the Objectives of ATIGS (see section 3.0 above), a vital component of ATIGS is the development of a multi-year, pan-Atlantic Aerospace and Defence international business development strategy, as well as a pan-Atlantic value proposition for FDI. The Objective of this engagement is to deliver the aforementioned components according to the time restrictions outlined in section 6.0.

5.0 Scope and Project Definition

The work is divided into two parts. These are set out below. Part 1 – Support the development of a multi-year international business development strategy

1. Complete a Sector Profile of the Atlantic Canadian Aerospace and Defence sector.

a) This will include collecting presently available information from each province,

comparing information for completeness (as well as comparability) across each province, and collecting research as required to fill gaps as directed by the Sector Team.

b) Once an Atlantic Canadian Profile is developed using comparable and consistent provincial information/data, suggest a baseline for future evaluation of international business development efforts.

2. Conduct a Sector Analysis and participate in the development of international business development objectives.

a) This will include an analysis of the strengths, weaknesses, opportunities and threats

which accurately characterize the Aerospace and Defence sector within each of the four Atlantic Provinces while at the same time, identifying any gaps that can be

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addressed through this strategy. b) Based on the identified opportunities, determine, examine and provide commentary

on clusters of capability, supply and value chain participation/opportunities, growth trends, and potential business opportunities for Atlantic Canadian Aerospace and Defence firms.

c) In consultation with the Sector Team, participate in the development of international business development objectives.

3. Identify Opportunities for Aerospace and Defence

a) Clearly identify Aerospace and Defence opportunities, including potential projects and upcoming tenders that would be a good fit with Atlantic Canadian Aerospace and Defence sector strengths and capabilities, providing an order of magnitude of the size of these export opportunities; and, identify key impediments to capitalizing on these opportunities

b) Provide an overview of the activities of major industry players active in identified key geographic areas.

c) Identify major sector events in the international market that will provide maximum benefit for Atlantic Canadian participation.

4. Assist in the drafting of the Implementation section and final editing of a sector-specific, multi-year International Business Development Strategy for Atlantic Canada.

a) Building on components drafted previously, assist in the writing of an Implementation

plan as well as the final editing on the full Strategy. b) Develop an Executive Summary for the Strategy.

Part 2 – Develop a value proposition for Foreign Direct Investment into Atlantic Canada’s Aerospace and Defence sectors.

1. Consultant will be expected to apply an FDI “lens” to the sector profile, understanding the reasons that companies make investment decisions in new locations. This is expected to be done at a provincial level first and then rolled up into an Atlantic view. These can include, but are not limited to:

a) Access to new markets and customers; b) Proximity to existing customers; c) Cost efficiencies; d) Availability of talent; e) Access to technology and skills, i.e. R&D; f) Proximity to existing cluster, i.e. Supply chain participation; and g) Procurement driven reasons (i.e., offset commitments).

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2. During project initiation, it is expected that the consultants will:

a) Undertake a high-level competitive analysis b) Develop a plan to fulfill the needs of the sector profiles c) Engage relevant stakeholders and solicit for input d) Review existing literature, including interviews with each FDI sub-committee

partner e) Identify up-front potential challenges in completing elements of the sector profiles f) Establish a timeline for completion of the sector profiles

3. Components of the Sector Profiles should include, but are not limited to:

a) Sector Summary b) Industry Description c) Verticals of Sector (Sub-sectors) d) Market Size (by Province and Atlantic) e) Market Growth Trajectory (by Province and Atlantic) f) Industry Business Models g) Industry Cost Drivers h) Industry “quality” drivers i) Industry Composition – Supply Chain j) Supply chain gap analysis k) Academia, research and development partners l) Industry associations m) Sector Strengths – FDI attraction messaging, Value propositions unique to the

Atlantic Provinces n) Sector Weaknesses – Address potential investor concerns o) Opportunities – Sub-sectors, Markets, Supply chain, Signature events p) Threats – Analysis of Competition and Industry Disruptors

6.0 Deliverables & Milestones Part 1: Support the development of a multi-year international business development strategy

The following provides a breakdown of the expected role of the Client (Sector Team) and Consultant for Part 1 of the engagement.

International Business Development Strategy

Sector Team’s Role Consultant’s Role Estimated Timeline

Project Work Plan Review Draft work plan 1 week after contract start

Sector Profile Collect all relevant provincial data from internal or other

Collect data from provinces and industry as required

September 25-October 22, 2017

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available sources for the Sector Profile

Provide existing data and analysis on sector to consultant

Be available for collaboration related to consultant’s questions

Contribute to profile as needed, provide direction, and approve draft.

to fill gaps as directed by the Team

Identify gaps in sectoral data and agree on baseline for metrics with Team

Draft sector profile with information synthesized

Sector Analysis and Export Objectives

Contribute to analysis, provide direction, and approve draft

Working with the Team, highlight clusters of strength and opportunity identified within the sector profile and lead the formulation of resulting objectives.

Draft sector analysis section of plan.

October 22 – November 15, 2017

Implementation section Host industry roundtables through ACADA to understand the activities that industry would like to participate in

Sit in on industry roundtables to observe and record comments from industry

November 15 – December 15, 2017

Final Export Plan Draft Approve Draft final sector export plan building on components drafted previously

January 2, 2017

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Part 2 – Develop a value proposition for Foreign Direct Investment into Atlantic Canada’s Aerospace and Defence sectors. The following provides a breakdown of the expected role of the Client (Sector Team) and Consultant for Part 2 of the engagement.

FDI Value Proposition Sector Team’s Role Consultant’s Role Estimated Timeline

Project Work Plan Review Draft work plan 1 week after contract start

Sector Profile with FDI “Lens”

Collect all relevant provincial content from internal or other available sources

Be available for collaboration related to consultant’s questions

Contribute to profile as needed, provide direction, and approve draft.

Undertake a high-level competitive analysis

Develop a plan to fulfill the needs of the sector profiles

Engage relevant stakeholders and solicit for input

Review existing literature, including interviews with each FDI sub-committee partner

Identify up-front potential challenges in completing elements of the sector profiles

Establish a timeline for completion

September 25- December 15, 2017

Within one week of the contract start date, the Consultant will develop a detailed plan for executing the work for agreement by the Client. The plan will include the organizations to be consulted, the timing and sequencing of work, and arrangement for regular communication between the Client and Consultant throughout the duration of the project. This plan will be discussed at a kick-off conference call/teleconference on October 2, 2017. Following receipt of the Client’s comments, the Consultant will revise the plan to take account of the feedback and provide a final draft of the work plan for agreement by the Client.

The Consultant will produce a PowerPoint presentation of their preliminary findings for agreement by Client prior to drafting a final report. This must be completed no later than November 2, 2017. The Consultant will be expected to revise their analysis to take feedback into account in consultation with the Client. The Consultant will be required to incorporate suggested changes and Committee comments in the final report to the Client, which will be submitted at the project completion date of January 2, 2017.

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7.0 Proposal Structure Table 1: RFP Structure

Introduction This section should introduce and briefly explain the firm, its capabilities and its experience in handling an assignment of this nature.

Understanding of the Issue

This section should explain the Consultant’s understanding and interpretation of the objectives and requirements of this project. The successful consultant will have demonstrated a good understanding of the work to be undertaken.

Technical Proposal

The technical proposal should include:

A listing and description of the major tasks to complete the work, using this RFP as a guide;

A description of methods to be used;

A listing of data and other sources to be used in the analysis; and

A draft work plan.

Cost Proposal

The cost proposal should include a table that summarizes costs by category. This may include but not be limited to items such as professional consulting fees, supplies and materials, travel, printing, etc. Travel costs will only be reimbursed for actual travel incurred and will follow federal guidelines as provided by the Client. Travel costs are to be considered included in the overall price not to exceed (section 9.0).

Management of the Proposal and Summary of Qualifications and Experience

This proposal must include:

A project schedule;

Summary of any travel requirements required to complete the project. Video/teleconference meetings will be carried out as required to discuss the project outline and strategy and present interim findings.

The consultant will also be required to make regular oral and written reports to the Client on the progress of the work.

A list of key project personnel to be used in the project outlining their roles and responsibilities;

This section must include a brief résumé of the qualifications and experience of both the proponent and of key project personnel as they relate to this RFP. It should clearly outline corporate and project staff knowledge of the sector including relevant contacts and regional networks.

Corporate profiles and short-form résumés of key project

personnel, as well as references for related work to be included as an

appendix. Preference will be given to Consultants with a proven ability to

complete the task, evidenced by two (2) similar reference projects, and

demonstrated experience in the sector (5 years at least). Additionally,

preference will be given to firms located within Atlantic Canada.

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8.0 General Conditions

Verbal information or representations shall not be binding on the Client. Only written changes, alterations, modifications or clarifications are binding. In order to be valid all such changes, alterations, modifications or clarifications shall be issued in the form of addenda and all such addenda shall become a part of this RFP.

The proposal of the successful Proponent will form part of any resultant contract agreement by attachment and incorporation by reference. Claims made in the proposal will constitute contractual commitments. Any provision in the proposal may be included in the resultant contract as a direct provision thereof. The successful Consultant, as a condition of submitting its proposal, accepts a customized contract will be negotiated.

Any resultant contract from this RFP will be governed by the by-laws of Atlantic Canada Aerospace and Defence Association and shall be issued in the name of the successful Consultant exactly as that successful Consultant’s personal or corporate name is stated in the RFP response document. Funds payable for materials delivered pursuant to any resultant contract shall be paid only to the Consultant who is so listed as party to any resultant contract. Only legal registered names of Proponents are acceptable.

The proposal will contain the signature, name and title of the person authorized to sign on behalf of the Consultant on the proposal submitted in response to this RFP.

The responsibility rests with the Consultant to submit a complete proposal, with proper and adequate detail to substantiate all aspects of its proposal. Incomplete proposals shall be deemed to be non-compliant. A complete proposal should include but not be limited to:

Legal name and status: The proposal shall state the correct legal name and legal status of the proposing entity and the correct mailing address.

Consultant contact: The name, title, telephone and fax numbers, E-mail address and civic address of a representative who may be contacted for clarification or other matters relating to the proposal shall be provided.

Content: The proposal will be clear, concise, and must include sufficient detail for effective evaluation and for substantiating the validity of stated claims. The proposal shall not simply rephrase or restate the requirements, but rather shall provide convincing rationale to address how the Consultant intends to meet these requirements.

The successful Consultant must be licensed to conduct business in its own jurisdiction and may be required to produce a certificate of good standing for that jurisdiction.

All terms and conditions will apply to all subcontractors and the Consultant will be responsible for subcontractors’ compliance. The Consultant will be responsible for all work done by the subcontractors. The Consultant will be responsible for all damages and will complete any work unfinished by the subcontractors.

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9.0 Firm Pricing

Prices quoted shall include Harmonized Sales Tax (HST), must be in Canadian currency, and shall be firm until the contract has expired. It is the intent that these prices remain fixed until completion and that no contract containing price escalations will be accepted prior to the anticipated completion date outlined in this RFP. The anticipated cost to successfully complete this project should not to exceed $125,000 inclusive of HST.

10.0 Awarding of Contract

The resulting contract will contain such reasonable terms as the Client may require.

The award of contract will be made by the Client, based upon the results of the evaluation of submitted proposals. The Client will notify the successful consultant in writing via electronic means. Those that are not successful will receive written notification via electronic correspondence as soon as possible once the award of contract has been accepted and the negotiations have been concluded with the successful consultant. The Client reserves the right not to explain in detail why unsuccessful consultants were not selected.

11.0 Project Schedule

The project schedule should assume an approximate starting date of September 15, 2017. The project must be completed by January 2, 2017.

Table 2: Project Deliverable Dates

Item No.

Deliverable

Estimated Due Date Estimated Progress Payment to the Consultant

1

Project Work Plan draft 1 week after contract start date

---

2

Approved Project Work Plan Within 1 week of draft work plan being submitted

25% of contract value

3

Draft of findings presented Sector Team

November 2, 2017

25% of contract value

4

Final Report acceptance by Sector Team

January 15, 2017 50% of contract value

The Consultant will be reimbursed upon submission of an invoice and as per the project schedule.

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The Client may hold back up to 10% of the total project cost to ensure the final product meets the requirements specified in the RFP.

12.0 Intellectual Property

Any intellectual property that is developed as a result of this project, including all data, specifications, concept plans, designs, rationales, presentation materials, economic and technical reports and related information produced by the consultants in completing this work shall be vested with the Client. The consultant shall deliver all files and documentation for this project to ACADA upon its completion and shall destroy all files and documentation on hand.

13.0 File Format

All written reports submitted under this agreement shall be provided in Microsoft Word and PDF formats. Data tables shall be provided in Microsoft Excel format. Presentations shall be provided in PowerPoint format.

14.0 Other Terms and Conditions

Strict confidentially is required for this project.

15.0 Proposal Evaluation

The Client will evaluate the proposals. The lowest priced proposal may not necessarily be accepted. ACADA reserves the right to reject all proposals and either cancel or re-issue if necessary.

The qualifications, commitment, related experience and knowledge of the project personnel will be key evaluation factors. The experience of the consulting team in undertaking assignments of this nature and magnitude will be a significant factor in proposal selection. The evaluation framework outlined in Table 3 will be used in the selection.

Table 3: Selection Criteria Evaluation will include examination of the following four areas as referenced in Section 7, Table 1.

Item No.

Criteria Weighting

1 Technical Proposal, including understanding of the issues 50%

2 Cost proposal 10%

3

Management of Proposal and Summary of Corporate and staff qualifications and experience relating to the Atlantic Aerospace and Defence Sector

40%

Total 100%

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16.0 Client Contact

ACADA will manage and administer the contract for this project. Contact for this RFP is:

Richard Billard

President/CEO

Atlantic Canada Aerospace and Defence Association (ACADA)

1801 Hollis Street, Suite 230

Halifax, NS, Canada

B3j 3N4

Email: Ricahrd.Billard@ac-ada.ca

All correspondence must be in electronic format to Mr. Billard and questions and responses will be provided to all respondents via e-mail prior to the submission deadline.

17.0 Submission of Proposals

Proposals must be submitted to the ACADA contact no later than 4:00 PM (AST) on Friday, September 8th, 2017.

Proposal should not exceed twenty (20) pages, excluding appendices. Appendices are acceptable as outlined above.

A digital copy is preferred.

No extensions to the submission date will be considered.

The successful proponent will be contacted within 7 business days of the RFP closing.